Land betterment charges rise 3.4% on average for non-landed residential, up 3.5% for landed
The broad increases signal higher underlying land values and sustained developer and owner-occupier demand, potentially raising redevelopment costs and influencing future project pricing and land bids.
For Sept 1 to Feb 28, 2027, average LBC rates rose 3.4% for non-landed residential, 3.5% for landed residential and 3.9% for industrial use.
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Land betterment charge (LBC) rates have been raised across several use groups for the six-month period between Sept 1 and Feb 28, 2027.
According to an Aug 31 release by the Singapore Land Authority (SLA), the LBC rates for use groups A (commercial), B1 (residential, landed), B2 (residential, non-landed), D (industrial) and E (place of worship/ civic and community institution) have increased. Rates for use group C (hotel and hospital) remain unchanged.
Overview of land betterment charge (LBC) rate revisions for September 2026-February 2027 cycle
The LBC is payable when landowners enhance a site’s value, whether through rezoning, intensifying plot ratio or topping up a lease. Revised twice a year, the rates reflect the government’s assessment of underlying land values across different sectors.
Read also: Non-landed residential land betterment charges rise 4.1% in strongest uptick since 2022
Non-landed residential rates up for fourth consecutive time
Non-landed residential (B2) LBC rates rose by 3.4% on average, with 70 out of SLA’s 118 geographical sectors seeing increases ranging from about 1% to 29%.
This marks the fourth consecutive rise in non-landed residential LBC rates, notes Mark Yip, CEO of Huttons Asia. Still, the latest increase is slower compared to the previous six-month period, when rates rose by 4.1%.
Yip adds that the increase comes as developers have continued to compete “keenly” for well-located Government Land Sale (GLS) sites. “Among these GLS sites that saw higher land bids are Berlayar Drive, Dover Drive, Dunearn Road, Kallang Close, Lentor Central, Peck Hay Road and River Valley Green (Parcel C).”
Sector 54 (Kallang) saw the largest increase of 29.1%, observes Marcus Chu, CEO of ERA Singapore. He attributed the increase to the Kallang Close GLS site, which was awarded to a joint venture between Frasers Property and Mitsubishi Estate for $610.75 million, or $1,415 psf per plot ratio (psf ppr).
“The site received four bids, indicating developers’ strong confidence in the Kallang area and the URA’s master plan for Kallang Alive, which includes opening the Kallang River for recreational activities,” adds Chu.
Sectors with the biggest increases in LBC rates for B2 (residential, non-landed)
Sectors 54 (Boon Keng) and 56 (Geylang) both saw the second-largest increase, at 23.6%.
Rise in landed residential rates due to price growth, GCB deals
Landed residential (B1) LBC rates increased 3.5% on average, with 108 sectors seeing increases from about 2% to 8%. The largest increments were seen in sectors 67 to 69, which cover the areas around Nassim, Ridley Park and Botanic Gardens, according to Chu.
Read also: New tool for developers to estimate land betterment charge, SLA to pilot digital conveyancing portal
Sectors with the biggest increases in LBC rates for B1 (residential, landed)
Average LBC rates rose following moderate landed residential price growth in the preceding months, says Leonard Tay, head of research at Knight Frank Singapore. In addition, prices are expected to continue appreciating in the coming months, with Tay projecting full-year price growth of around 3% to 5%.
Huttons’ Yip points out that Good Class Bungalow transactions in the past six months — which included deals on Nassim Road and Cluny Hill — may have also contributed to the higher LBC rates.
Industrial use group sees highest increase
Industrial (D) LBC rates saw the biggest rise for the period, increasing 3.9% on average. All 118 sectors for the use group saw increments, ranging from about 2% to 10%.
This is the second consecutive six-month period where all sectors in the use group have registered increases, says Knight Frank's Tay. It comes amid steady industrial transaction volume, particularly for sub-$10 million properties, as owner-occupiers continued to seek space for business continuity, he added.
The sectors with the sharpest increases were supported by recent strong bids for industrial GLS sites, such as in Kaki Bukit and Jalan Buroh, comments Wong Shanting, head of research at Newmark. “The robust land prices achieved at these sites likely contributed to the broader upward revision in industrial LBC rates across the island,” she continued.
Buoyant market activity also likely supported commercial LBC rates, which rose 1.7% on average. A total of 46 sectors saw an increase in rates of between 3% and 19%.
Read also: Land betterment charges rise 3-4% for landed residential, up 0.3% for non-landed
Sectors 96 (Bayshore, Bedok) and 99 (Changi Airport, Changi) saw the biggest surges. “Sectors 96 and 99 recorded increases of 19% and 12%, respectively, reflecting higher land values following the recent award of the Bayshore Drive GLS site at $1,323 psf per plot ratio, as well as the impending completion of the sale of White Sands Mall,” Wong explains.
Meanwhile, places of worship / civic and community institution (E) LBC rates increased by 2.9% on average. Rates for this group have increased four times since March 2025, noted Knight Frank's Tay.
However, before that, rates for the sector had not increased since September 2014. "As competing uses such as residential redevelopment, mixed-use projects and industrial developments continue to command higher land values, civic and community sites could have been re-rated over the past two years to reflect corresponding increases in benchmark land values islandwide," he adds.